The Real Reason Wages Have Stagnated: Our Economy is Optimized for Financialization

Labor’s share of the national income is in freefall as a direct result of the optimization of financialization. The Achilles Heel of our socio-economic system is the secular stagnation of earned income, i.e. wages and salaries.┬áStagnating wages undermine every aspect of our economy: consumption, credit, taxation and perhaps most importantly, the unspoken┬ásocial contract┬áthat the benefits of productivity and increasing wealth will be distributed widely, if not fairly.